Once upon a time giving the consumer a good product for a fair price was a matter of pride. Now, getting as good a price as possible for the cheapest product one can get away with seems to be the source of pride, and of promotions, corporate style. I posed this question in the business/corporate section and received only one answer and it was of a life support/needs context.
Would you create a product you are proud of and charge a price for that product that would give you a fair profit or try to find a way to make it as cheaply as possible and price it at what the market will pay?
2006-08-01 07:07:54 · 4 answers · asked by Liligirl 6 in Social Science ➔ Other - Social Science
Well, I think it makes sense to find the cheapest way to make a product. Why would you spend $3 to make something when you can make the exact same thing for $1? (The only reason I could think of is if the $1 method breached moral/ethical boundaries that hurt people or communities.)
As far as pricing, I think companies always price things at what the market would pay. Otherwise they would be out of business. To circumvent a decline in customer base, many times companies will introduce different price points on variations of their core product. For example: Old Navy, Gap, Banana. Or, Toyota/Lexus.
2006-08-02 08:19:36 · answer #1 · answered by truthyness 7 · 0⤊ 0⤋
Unfortunately, consumers show time and again that they don't want a "good" product for a "fair" price. Most of them want a cheap disposable product; it costs little to buy and even less to throw away. Take a look at watches and cameras, for example... The minority wants and likes to pay exorbitant prices just to show off or brag about it. So the business evolved correspondingly; there are companies that produce and sell cheap disposables, and there are companies that produce and sell items for conspicuous consumption...
2006-08-01 07:33:24 · answer #2 · answered by NC 7 · 0⤊ 0⤋
We need to get back to the time a personal owned and the barter type business. by supporting, SAM. walmart... we are letting them take over the market and the end result will be higher prices. coupons track your usage and all this survey garbage same thing find market and mark up those products... Just an opinion but the first sign your going to see on mars is "WALMART COMING SOON"
2006-08-01 07:20:28 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Personally I would rather have a product I could be proud of and market it at a price that would yeild a fair profit. That could be why I am not a rich fat cat.
2006-08-01 07:13:45 · answer #4 · answered by Badkitty 7 · 0⤊ 0⤋